Step 1: Understanding the Concept:
Coral reefs are highly productive marine ecosystems.
They are classified into three major types based on their geological formation: fringing reefs, barrier reefs, and atolls.
Step 2: Detailed Explanation:
- Atolls: These are ring-shaped coral reefs that enclose a central lagoon, typically formed over submerged volcanic seamounts.
In Indian waters, atolls are exclusively found in the Lakshadweep Islands group in the Arabian Sea.
- Fringing reefs: These grow close to the shoreline of islands or mainlands.
In India, fringing reefs are found in the Andaman and Nicobar Islands, the Gulf of Mannar, and the Gulf of Kutch.
Step 3: Final Answer:
Atolls are found in the Lakshadweep Islands, corresponding to option (D).